Pelham’s housing stock is split almost 50-50 between 1970–1990 brick ranches on 0.3-acre lots north of Highway 31 and 2005-plus Craftsman-style builds in planned communities south toward Helena. Median sale price ended April at $285,000, up 5.2% year-over-year, but still roughly $165,000 below the statewide metro median. Entry-level inventory under $250,000 moves fastest—often within 10–14 days—because FHA buyers can put down just 3.5% and still land a 1,400-sq-ft home zoned for award-winning Oak Mountain schools.

• New construction average: $155 per sq ft (Ballantrae, Legacy at Pelham)
• Resale average: $132 per sq ft (Pelham Heights, Chandalar)
• Days on market: 28 overall, 11 for listings under $275k

Investors have shifted toward build-to-rent townhomes near the Shelby County Airport, tightening supply for first-time buyers; that makes pre-approval through NMHL’s Fast-Track platform critical before you tour homes on a Saturday.

Mallard Pointe & Ballantrae – $350k–$550k. Gated entrances, golf-course views, and community pools. HOA around $550/year. Zoned Oak Mountain Elementary; expect resale appreciation 7–9% annually.

Pelham Heights / Old Town – $220k–$290k. 1970s brick ranches on level lots, walkable to Pelham High sports complex. No HOA, $12/month trash fee. Perfect for FHA 203(k) renovation loans—NMHL’s in-house escrow team can roll up to $35,000 of repairs into the mortgage at today’s rate instead of a second lien.

Chandalar / Chandalar South – $260k–$340k. Built 1995–2005, 1,600–2,100 sq ft. Sidewalks leading to Riverchase Elementary. Many homes qualify for USDA, dropping your down payment to zero; sellers often cover closing because the community is still building new sections.

Legacy at Pelham – $300k–$425k. New construction with side-entry garages and community clubhouse. Builder incentives up to $7,000 toward closing if you use NMHL’s preferred attorney—stack that with Step Up DPA for potentially negative cash to close.

Alabama Housing Finance Authority runs two programs Pelham buyers routinely combine:

• Step Up – 3% of purchase price (max $7,500) forgivable after 5 years. 640 score minimum, 4.75%–6.0% fixed rate depending on market.
• Affordable Income Subsidy – Extra 0.25% rate reduction if household income is ≤80% of area median ($62,400 for Shelby County).

Shelby County Community Development offers a $5,000 Homebuyer Assistance Loan at 0% interest, payable on sale or refinance. Funds are released quarterly; NMHL tracks availability so you don’t waste time. Veterans can layer the VA Funding-Fee waiver (if rated 10% disabled) with Step Up—our last client bought a $275k townhouse in Ballantrae with $0 down and only $1,100 in total closing because the seller paid the balance.

Self-employed borrowers who can’t show two years of stable W-2s should look at NMHL’s Community Hero Program: $1,000 toward appraisal and a 0.125% rate reduction for teachers, nurses, and first-responders working in Pelham or Shelby County schools.

Shelby County reassesses residential property every four years; Pelham’s next reappraisal cycle is 2026. Expect assessed value to jump 12–15% based on recent sales comps, but Alabama’s homestead exemption knocks $4,200 off the assessed figure and caps annual increases at 10% once you file. On a $285,000 home your first full year tax bill will be roughly $1,254; after homestead file it drops to about $1,080.

Wind/hail insurance runs higher than the state average because of Shelby County’s 2011 tornado history—budget $1.60 per $1,000 of dwelling coverage, so a $285k replacement cost equals $456/year. Flood zones are limited to areas within Buck Creek; only 4% of Pelham parcels require flood insurance, but if the home you love sits in AE zone expect an extra $600–$1,100 annually.

HOA fees range from zero (Pelham Heights) to $600/year (Ballantrae). Newer PUDs include lawn maintenance and front-yard irrigation—factor that into your debt-to-income ratio because NMHL can count the savings as a compensating factor if your file is borderline.

Shelby County Schools operate four elementary zones inside Pelham city limits. Oak Mountain Elementary (GreatSchools 9/10) lifts surrounding home values 7–10% versus Pelham Ridge Elementary (7/10). OMES feeds into the same middle and high campus, so buyers often pay $30k more for a 1970s ranch inside that boundary. New construction in Timberline Ridge is zoned OMES; builders advertise the premium and rarely negotiate base price.

If you’re child-free or plan to private-school, target Pelham Ridge or Riverchase zones—your appraisal will still hold, but you’ll gain negotiation room. Investors buying Section 8 rentals in the Highway 31 corridor prefer Riverchase Elementary because entry prices sit under $220k and rental demand from Helena and Alabaster remains strong ($1,450/month on a $215k purchase = 8.1% gross yield).

NMHL’s appraisal desk keeps a live boundary map; during your pre-approval call we’ll overlay listings with school zones so you never fall in love with a house outside your preferred district.

Fresh-Start FHA – 580 credit, 3.5% down. Manual underwrite allows non-traditional credit: 12-month Pelham utility payment history or 12-month rent receipts to private landlords. Gift funds OK from family or eligible assistance programs.

Bank-Statement Advantage – 12 or 24 months of business statements, count 50–85% of deposits. No tax returns required. 10% down to $647k; 20% down removes PMI. Ideal for landscapers, restaurant owners, and traveling nurses who claim heavy deductions.

VA Zero + Escrow Repair – 100% financing to $1.5 million. We’ll escrow up to $15,000 for cosmetic repairs discovered at appraisal—crucial for 1970s brick ranches in Pelham Heights that need cosmetic updates but have solid bones. Funding-fee reduction for 10% disabled vets saves roughly $6,200 on a $300k purchase.

USDA Rural 100% – All of 35114 and northern 35124 qualify. Income cap is $103,500 for a household of four. Use NMHL’s USDA RateSaver to float your rate for 75 days while new construction wraps up.

Community Hero Conventional – $1,000 lender credit plus 0.125% rate discount for teachers, nurses, firefighters, and police working in Pelham or Shelby County schools. Combine with Step Up for potentially $8,500 in combined assistance.

Every program comes with our Same-Day Underwrite guarantee: submit your full file by 11 a.m. and we’ll issue credit, income, and asset approval before you leave the office—critical in a market where sellers won’t wait for open-ended approval letters.